Full Text of SB2077 95th General Assembly
SB2077 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 SB2077
Introduced 2/14/2008, by Sen. David Koehler SYNOPSIS AS INTRODUCED: |
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Amends the Counties Code. Provides that the county board of any county may impose a special county retailers' occupation tax for public facility purposes. Provides that the tax must be approved by referendum. Defines "public facility purposes". Effective immediately.
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| FISCAL NOTE ACT MAY APPLY | |
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A BILL FOR
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SB2077 |
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LRB095 19211 HLH 45462 b |
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| AN ACT concerning local government.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Counties Code is amended by changing Section | 5 |
| 5-1006.5 as follows:
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| (55 ILCS 5/5-1006.5)
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| Sec. 5-1006.5. Special County Retailers' Occupation Tax
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| For Public Safety , Public Facilities, or Transportation.
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| (a) The county board of any county may impose a
tax upon | 10 |
| all persons engaged in the business of selling tangible | 11 |
| personal
property, other than personal property titled or | 12 |
| registered with an agency of
this State's government, at retail | 13 |
| in the county on the gross receipts from the
sales made in the | 14 |
| course of business to provide revenue to be used exclusively
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| for public safety , public facility, or transportation purposes | 16 |
| in that county, if a
proposition for the
tax has been submitted | 17 |
| to the electors of that county and
approved by a majority of | 18 |
| those voting on the question. If imposed, this tax
shall be | 19 |
| imposed only in one-quarter percent increments. By resolution, | 20 |
| the
county board may order the proposition to be submitted at | 21 |
| any election.
If the tax is imposed for
transportation purposes | 22 |
| for expenditures for public highways or as
authorized
under the | 23 |
| Illinois Highway Code, the county board must publish notice
of |
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| the existence of its long-range highway transportation
plan as | 2 |
| required or described in Section 5-301 of the Illinois
Highway | 3 |
| Code and must make the plan publicly available prior to
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| approval of the ordinance or resolution
imposing the tax. If | 5 |
| the tax is imposed for transportation purposes for
expenditures | 6 |
| for passenger rail transportation, the county board must | 7 |
| publish
notice of the existence of its long-range passenger | 8 |
| rail transportation plan
and
must make the plan publicly | 9 |
| available prior to approval of the ordinance or
resolution | 10 |
| imposing the tax. The county clerk shall certify the
question | 11 |
| to the proper election authority, who
shall submit the | 12 |
| proposition at an election in accordance with the general
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| election law.
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| (1) The proposition for public safety purposes shall be | 15 |
| in
substantially the following form: | 16 |
| "To pay for public safety purposes, shall (name of | 17 |
| county) be authorized to impose an increase on its share of | 18 |
| local sales taxes by (insert rate)?" | 19 |
| As additional information on the ballot below the | 20 |
| question shall appear the following: | 21 |
| "This would mean that a consumer would pay an | 22 |
| additional (insert amount) in sales tax for every $100 of | 23 |
| tangible personal property bought at retail."
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| The county board may also opt to establish a sunset | 25 |
| provision at which time the additional sales tax would | 26 |
| cease being collected, if not terminated earlier by a vote |
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| of the county board. If the county board votes to include a | 2 |
| sunset provision, the proposition for public safety | 3 |
| purposes shall be in substantially the following form: | 4 |
| "To pay for public safety purposes, shall (name of | 5 |
| county) be authorized to impose an increase on its share of | 6 |
| local sales taxes by (insert rate) for a period not to | 7 |
| exceed (insert number of years)?" | 8 |
| As additional information on the ballot below the | 9 |
| question shall appear the following: | 10 |
| "This would mean that a consumer would pay an | 11 |
| additional (insert amount) in sales tax for every $100 of | 12 |
| tangible personal property bought at retail. If imposed, | 13 |
| the additional tax would cease being collected at the end | 14 |
| of (insert number of years), if not terminated earlier by a | 15 |
| vote of the county board."
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| For the purposes of the
paragraph, "public safety | 17 |
| purposes" means
crime prevention, detention, fire | 18 |
| fighting, police, medical, ambulance, or
other emergency | 19 |
| services.
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| Votes shall be recorded as "Yes" or "No".
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| (2) The proposition for transportation purposes shall | 22 |
| be in
substantially
the following form: | 23 |
| "To pay for improvements to roads and other | 24 |
| transportation purposes, shall (name of county) be | 25 |
| authorized to impose an increase on its share of local | 26 |
| sales taxes by (insert rate)?" |
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| As additional information on the ballot below the | 2 |
| question shall appear the following: | 3 |
| "This would mean that a consumer would pay an | 4 |
| additional (insert amount) in sales tax for every $100 of | 5 |
| tangible personal property bought at retail."
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| The county board may also opt to establish a sunset | 7 |
| provision at which time the additional sales tax would | 8 |
| cease being collected, if not terminated earlier by a vote | 9 |
| of the county board. If the county board votes to include a | 10 |
| sunset provision, the proposition for transportation | 11 |
| purposes shall be in substantially the following form: | 12 |
| "To pay for road improvements and other transportation | 13 |
| purposes, shall (name of county) be authorized to impose an | 14 |
| increase on its share of local sales taxes by (insert rate) | 15 |
| for a period not to exceed (insert number of years)?" | 16 |
| As additional information on the ballot below the | 17 |
| question shall appear the following: | 18 |
| "This would mean that a consumer would pay an | 19 |
| additional (insert amount) in sales tax for every $100 of | 20 |
| tangible personal property bought at retail. If imposed, | 21 |
| the additional tax would cease being collected at the end | 22 |
| of (insert number of years), if not terminated earlier by a | 23 |
| vote of the county board."
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| For the purposes of this paragraph, transportation | 25 |
| purposes means
construction, maintenance, operation, and | 26 |
| improvement of
public highways, any other purpose for which |
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| a county may expend funds under
the Illinois Highway Code, | 2 |
| and passenger rail transportation.
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| The votes shall be recorded as "Yes" or "No".
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| (3) The proposition for public facility purposes shall | 5 |
| be in substantially the following form: | 6 |
| "To pay for public facility purposes, shall (name of
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| county) be authorized to impose an increase on its share of
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| local sales taxes by (insert rate)?" | 9 |
| As additional information on the ballot below the
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| question shall appear the following: | 11 |
| "This would mean that a consumer would pay an
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| additional (insert amount) in sales tax for every $100 of
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| tangible personal property bought at retail." | 14 |
| The county board may also opt to establish a sunset
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| provision at which time the additional sales tax would
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| cease being collected, if not terminated earlier by a vote
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| of the county board. If the county board votes to include a
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| sunset provision, the proposition for public facility
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| purposes shall be in substantially the following form: | 20 |
| "To pay for public facility purposes, shall (name of
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| county) be authorized to impose an increase on its share of
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| local sales taxes by (insert rate) for a period not to
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| exceed (insert number of years)?" | 24 |
| As additional information on the ballot below the
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| question shall appear the following: | 26 |
| "This would mean that a consumer would pay an
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| additional (insert amount) in sales tax for every $100 of
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| tangible personal property bought at retail. If imposed,
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| the additional tax would cease being collected at the end
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| of (insert number of years), if not terminated earlier by a
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| vote of the county board." | 6 |
| For purposes of this Section, "public facilities | 7 |
| purposes" means the acquisition, development, | 8 |
| construction, reconstruction, rehabilitation, improvement, | 9 |
| financing, architectural planning, and installation of | 10 |
| capital facilities consisting of buildings, structures, | 11 |
| and durable equipment and for the acquisition and | 12 |
| improvement of real property and interest in real property | 13 |
| required, or expected to be required, in connection with | 14 |
| the public facilities, for use by the county for the | 15 |
| furnishing of governmental services to its citizens, | 16 |
| including but not limited to museums and nursing homes. | 17 |
| The votes shall be recorded as "Yes" or "No". | 18 |
| If a majority of the electors voting on
the proposition | 19 |
| vote in favor of it, the county may impose the tax.
A county | 20 |
| may not submit more than one proposition authorized by this | 21 |
| Section
to the electors at any one time.
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| This additional tax may not be imposed on the sales of food | 23 |
| for human
consumption that is to be consumed off the premises | 24 |
| where it is sold (other
than alcoholic beverages, soft drinks, | 25 |
| and food which has been prepared for
immediate consumption) and | 26 |
| prescription and non-prescription medicines, drugs,
medical |
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| appliances and insulin, urine testing materials, syringes, and | 2 |
| needles
used by diabetics. The tax imposed by a county under | 3 |
| this Section and
all civil penalties that may be assessed as an | 4 |
| incident of the tax shall be
collected and enforced by the | 5 |
| Illinois Department of Revenue and deposited
into a special | 6 |
| fund created for that purpose. The certificate
of registration | 7 |
| that is issued by the Department to a retailer under the
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| Retailers' Occupation Tax Act shall permit the retailer to | 9 |
| engage in a business
that is taxable without registering | 10 |
| separately with the Department under an
ordinance or resolution | 11 |
| under this Section. The Department has full
power to administer | 12 |
| and enforce this Section, to collect all taxes and
penalties | 13 |
| due under this Section, to dispose of taxes and penalties so
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| collected in the manner provided in this Section, and to | 15 |
| determine
all rights to credit memoranda arising on account of | 16 |
| the erroneous payment of
a tax or penalty under this Section. | 17 |
| In the administration of and compliance
with this Section, the | 18 |
| Department and persons who are subject to this Section
shall | 19 |
| (i) have the same rights, remedies, privileges, immunities, | 20 |
| powers, and
duties, (ii) be subject to the same conditions, | 21 |
| restrictions, limitations,
penalties, and definitions of | 22 |
| terms, and (iii) employ the same modes of
procedure as are | 23 |
| prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f,
1i, 1j,
1k, 1m, | 24 |
| 1n,
2 through 2-70 (in respect to all provisions contained in | 25 |
| those Sections
other than the
State rate of tax), 2a, 2b, 2c, 3 | 26 |
| (except provisions
relating to
transaction returns and quarter |
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| monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e,
5f,
5g, 5h, 5i, | 2 |
| 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of | 3 |
| the
Retailers' Occupation Tax Act and Section 3-7 of the | 4 |
| Uniform Penalty and
Interest Act as if those provisions were | 5 |
| set forth in this Section.
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| Persons subject to any tax imposed under the authority | 7 |
| granted in this
Section may reimburse themselves for their | 8 |
| sellers' tax liability by
separately stating the tax as an | 9 |
| additional charge, which charge may be stated
in combination, | 10 |
| in a single amount, with State tax which sellers are required
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| to collect under the Use Tax Act, pursuant to such bracketed | 12 |
| schedules as the
Department may prescribe.
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| Whenever the Department determines that a refund should be | 14 |
| made under this
Section to a claimant instead of issuing a | 15 |
| credit memorandum, the Department
shall notify the State | 16 |
| Comptroller, who shall cause the order to be drawn for
the | 17 |
| amount specified and to the person named in the notification | 18 |
| from the
Department. The refund shall be paid by the State | 19 |
| Treasurer out of the County
Public Safety or Transportation | 20 |
| Retailers' Occupation Tax Fund.
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| (b) If a tax has been imposed under subsection (a), a
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| service occupation tax shall
also be imposed at the same rate | 23 |
| upon all persons engaged, in the county, in
the business
of | 24 |
| making sales of service, who, as an incident to making those | 25 |
| sales of
service, transfer tangible personal property within | 26 |
| the county
as an
incident to a sale of service.
This tax may |
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| not be imposed on sales of food for human consumption that is | 2 |
| to
be consumed off the premises where it is sold (other than | 3 |
| alcoholic beverages,
soft drinks, and food prepared for | 4 |
| immediate consumption) and prescription and
non-prescription | 5 |
| medicines, drugs, medical appliances and insulin, urine
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| testing materials, syringes, and needles used by diabetics.
The | 7 |
| tax imposed under this subsection and all civil penalties that | 8 |
| may be
assessed as an incident thereof shall be collected and | 9 |
| enforced by the
Department of Revenue. The Department has
full | 10 |
| power to
administer and enforce this subsection; to collect all | 11 |
| taxes and penalties
due hereunder; to dispose of taxes and | 12 |
| penalties so collected in the manner
hereinafter provided; and | 13 |
| to determine all rights to credit memoranda
arising on account | 14 |
| of the erroneous payment of tax or penalty hereunder.
In the | 15 |
| administration of, and compliance with this subsection, the
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| Department and persons who are subject to this paragraph shall | 17 |
| (i) have the
same rights, remedies, privileges, immunities, | 18 |
| powers, and duties, (ii) be
subject to the same conditions, | 19 |
| restrictions, limitations, penalties,
exclusions, exemptions, | 20 |
| and definitions of terms, and (iii) employ the same
modes
of | 21 |
| procedure as are prescribed in Sections 2 (except that the
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| reference to State in the definition of supplier maintaining a | 23 |
| place of
business in this State shall mean the county), 2a, 2b, | 24 |
| 2c, 3 through
3-50 (in respect to all provisions therein other | 25 |
| than the State rate of
tax), 4 (except that the reference to | 26 |
| the State shall be to the county),
5, 7, 8 (except that the |
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| jurisdiction to which the tax shall be a debt to
the extent | 2 |
| indicated in that Section 8 shall be the county), 9 (except as
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| to the disposition of taxes and penalties collected), 10, 11, | 4 |
| 12 (except the reference therein to Section 2b of the
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| Retailers' Occupation Tax Act), 13 (except that any reference | 6 |
| to the State
shall mean the county), Section 15, 16,
17, 18, 19 | 7 |
| and 20 of the Service Occupation Tax Act and Section 3-7 of
the | 8 |
| Uniform Penalty and Interest Act, as fully as if those | 9 |
| provisions were
set forth herein.
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| Persons subject to any tax imposed under the authority | 11 |
| granted in
this subsection may reimburse themselves for their | 12 |
| serviceman's tax liability
by separately stating the tax as an | 13 |
| additional charge, which
charge may be stated in combination, | 14 |
| in a single amount, with State tax
that servicemen are | 15 |
| authorized to collect under the Service Use Tax Act, in
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| accordance with such bracket schedules as the Department may | 17 |
| prescribe.
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| Whenever the Department determines that a refund should be | 19 |
| made under this
subsection to a claimant instead of issuing a | 20 |
| credit memorandum, the Department
shall notify the State | 21 |
| Comptroller, who shall cause the warrant to be drawn
for the | 22 |
| amount specified, and to the person named, in the notification
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| from the Department. The refund shall be paid by the State | 24 |
| Treasurer out
of the County Public Safety or Transportation | 25 |
| Retailers' Occupation Fund.
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| Nothing in this subsection shall be construed to authorize |
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| the county
to impose a tax upon the privilege of engaging in | 2 |
| any business which under
the Constitution of the United States | 3 |
| may not be made the subject of taxation
by the State.
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| (c) The Department shall immediately pay over to the State | 5 |
| Treasurer, ex
officio,
as trustee, all taxes and penalties | 6 |
| collected under this Section to be
deposited into the County | 7 |
| Public Safety or Transportation Retailers'
Occupation Tax | 8 |
| Fund, which
shall be an unappropriated trust fund held outside | 9 |
| of the State treasury. On
or before the 25th
day of each | 10 |
| calendar month, the Department shall prepare and certify to the
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| Comptroller the disbursement of stated sums of money
to the | 12 |
| counties from which retailers have paid
taxes or penalties to | 13 |
| the Department during the second preceding
calendar month. The | 14 |
| amount to be paid to each county, and deposited by the
county | 15 |
| into its special fund created for the purposes of this Section, | 16 |
| shall
be the amount (not
including credit memoranda) collected | 17 |
| under this Section during the second
preceding
calendar month | 18 |
| by the Department plus an amount the Department determines is
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| necessary to offset any amounts that were erroneously paid to a | 20 |
| different
taxing body, and not including (i) an amount equal to | 21 |
| the amount of refunds
made
during the second preceding calendar | 22 |
| month by the Department on behalf of
the county and (ii) any | 23 |
| amount that the Department determines is
necessary to offset | 24 |
| any amounts that were payable to a different taxing body
but | 25 |
| were erroneously paid to the county. Within 10 days after | 26 |
| receipt by the
Comptroller of the disbursement certification to |
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| the counties provided for in
this Section to be given to the | 2 |
| Comptroller by the Department, the Comptroller
shall cause the | 3 |
| orders to be drawn for the respective amounts in accordance
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| with directions contained in the certification.
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| In addition to the disbursement required by the preceding | 6 |
| paragraph, an
allocation shall be made in March of each year to | 7 |
| each county that received
more than $500,000 in disbursements | 8 |
| under the preceding paragraph in the
preceding calendar year. | 9 |
| The allocation shall be in an amount equal to the
average | 10 |
| monthly distribution made to each such county under the | 11 |
| preceding
paragraph during the preceding calendar year | 12 |
| (excluding the 2 months of
highest receipts). The distribution | 13 |
| made in March of each year subsequent to
the year in which an | 14 |
| allocation was made pursuant to this paragraph and the
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| preceding paragraph shall be reduced by the amount allocated | 16 |
| and disbursed
under this paragraph in the preceding calendar | 17 |
| year. The Department shall
prepare and certify to the | 18 |
| Comptroller for disbursement the allocations made in
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| accordance with this paragraph.
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| (d) For the purpose of determining the local governmental | 21 |
| unit whose tax is
applicable, a retail sale by a producer of | 22 |
| coal or another mineral mined in
Illinois is a sale at retail | 23 |
| at the place where the coal or other mineral mined
in Illinois | 24 |
| is extracted from the earth. This paragraph does not apply to | 25 |
| coal
or another mineral when it is delivered or shipped by the | 26 |
| seller to the
purchaser
at a point outside Illinois so that the |
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| sale is exempt under the United States
Constitution as a sale | 2 |
| in interstate or foreign commerce.
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| (e) Nothing in this Section shall be construed to authorize | 4 |
| a county to
impose a
tax upon the privilege of engaging in any | 5 |
| business that under the Constitution
of the United States may | 6 |
| not be made the subject of taxation by this State.
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| (e-5) If a county imposes a tax under this Section, the | 8 |
| county board may,
by ordinance, discontinue or lower the rate | 9 |
| of the tax. If the county board
lowers the tax rate or | 10 |
| discontinues the tax, a referendum must be
held in accordance | 11 |
| with subsection (a) of this Section in order to increase the
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| rate of the tax or to reimpose the discontinued tax.
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| (f) Beginning April 1, 1998, the results of any election | 14 |
| authorizing a
proposition to impose a tax
under this Section or | 15 |
| effecting a change in the rate of tax, or any ordinance
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| lowering the rate or discontinuing the tax,
shall be certified
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| by the
county clerk and filed with the Illinois Department of | 18 |
| Revenue
either (i) on or
before the first day of April, | 19 |
| whereupon the Department shall proceed to
administer and | 20 |
| enforce the tax as of the first day of July next following
the | 21 |
| filing; or (ii)
on or before the first day of October, | 22 |
| whereupon the
Department shall proceed to administer and | 23 |
| enforce the tax as of the first
day of January next following | 24 |
| the filing.
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| (g) When certifying the amount of a monthly disbursement to | 26 |
| a county under
this
Section, the Department shall increase or |
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| decrease the amounts by an amount
necessary to offset any | 2 |
| miscalculation of previous disbursements. The offset
amount | 3 |
| shall be the amount erroneously disbursed within the previous 6 | 4 |
| months
from the time a miscalculation is discovered.
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| (h) This Section may be cited as the "Special County | 6 |
| Occupation Tax
For Public Safety , Public Facilities, or | 7 |
| Transportation Law".
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| (i) For purposes of this Section, "public safety" includes, | 9 |
| but is not
limited to, crime prevention, detention, fire | 10 |
| fighting, police, medical,
ambulance, or other emergency
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| services. For the purposes of this Section, "transportation" | 12 |
| includes, but
is not limited to, the construction,
maintenance, | 13 |
| operation, and improvement of public highways, any other
| 14 |
| purpose for which a county may expend funds under the Illinois | 15 |
| Highway Code,
and passenger rail transportation. For the | 16 |
| purposes of this Section, "public facilities purposes" | 17 |
| includes, but is not limited to, the acquisition, development, | 18 |
| construction, reconstruction, rehabilitation, improvement, | 19 |
| financing, architectural planning, and installation of capital | 20 |
| facilities consisting of buildings, structures, and durable | 21 |
| equipment and for the acquisition and improvement of real | 22 |
| property and interest in real property required, or expected to | 23 |
| be required, in connection with the public facilities, for use | 24 |
| by the county for the furnishing of governmental services to | 25 |
| its citizens, including but not limited to museums and nursing | 26 |
| homes.
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| (Source: P.A. 94-781, eff. 5-19-06; 95-474, eff. 1-1-08.)
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| Section 99. Effective date. This Act takes effect upon | 3 |
| becoming law.
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